E3 2009: Nintendo Ditched New Handheld

Nintendo's President Satoru Iwata has revealed that the company had completed design of a successor to the DS, but have since decided not to release the console.

"In the history of Nintendo there are several such examples," Iwata told CNBC in an interview, picked up by Edge Online, "But when we are launching new hardware, the most important is thing is to sustain the momentum. If introducing new hardware won't do anything to do that, well…"

The DS has proved a worldwide phenomenon, and the third iteration of the hardware was recently released in the shape of the Nintendo DSi.

Iwata also addressed calls for a Wii price cut in the wake of flagging sales. "Right now, we have no plans at all about a price cut," came his response. "We are going to start launching the stronger software in the later half of the year — and we are confident we will regain the momentum.

"People often talk about the price cut as if it's an almighty weapon. The fact of the matter is that what a price cut can do is rather limited."